Question 4 Answer all parts of the question. 4a Johannes has been your client for many years. He is domiciled and resident in the UK for tax purposes. He has provided you with the following information with regard to his capital transactions during 2017/18: 12 April 2017 7 July 2017 9 February 2018 Sale of an antique vase for 8,000 which cost 5,200 in May 2010 Cash gift of 12,000 to his brother Leon Sale of a 10% shareholding in Holland Ltd for 161,000 (see below) Holland Ltd is a UK trading company and Johannes purchased his 10% shareholding on 13 March 2015 for 53,000 He has been an employee of the company for the past two years. Other than the transactions described above, Johannes has made no other gifts or disposals in the last ten years. Required Explain, with supporting calculations, the capital gains tax and lifetime inheritance tax implications of the above transactions, assuming all available reliefs are claimed (10 marks) 4b You recently received news that Johannes died on 5 April 2018. You have been sent the following information regarding his estate on death and the valuation of his assets at 5 April 2018: His principal private residence A 25% shareholding in Tulip Ltd, a trading company, held for 3 years Vintage car Other UK personal possessions Deposit in a French branch of a UK bank 731,000 67,500 15,000 75,300 22,000 In his will Johannes made a 15,000 gift to charity and left the remainder of his estate to his daughter Required Calculate the inheritance tax payable as a result of Johannes' death. (10 marks) (Total 20 marks) Question 4 Answer all parts of the question. 4a Johannes has been your client for many years. He is domiciled and resident in the UK for tax purposes. He has provided you with the following information with regard to his capital transactions during 2017/18: 12 April 2017 7 July 2017 9 February 2018 Sale of an antique vase for 8,000 which cost 5,200 in May 2010 Cash gift of 12,000 to his brother Leon Sale of a 10% shareholding in Holland Ltd for 161,000 (see below) Holland Ltd is a UK trading company and Johannes purchased his 10% shareholding on 13 March 2015 for 53,000 He has been an employee of the company for the past two years. Other than the transactions described above, Johannes has made no other gifts or disposals in the last ten years. Required Explain, with supporting calculations, the capital gains tax and lifetime inheritance tax implications of the above transactions, assuming all available reliefs are claimed (10 marks) 4b You recently received news that Johannes died on 5 April 2018. You have been sent the following information regarding his estate on death and the valuation of his assets at 5 April 2018: His principal private residence A 25% shareholding in Tulip Ltd, a trading company, held for 3 years Vintage car Other UK personal possessions Deposit in a French branch of a UK bank 731,000 67,500 15,000 75,300 22,000 In his will Johannes made a 15,000 gift to charity and left the remainder of his estate to his daughter Required Calculate the inheritance tax payable as a result of Johannes' death. (10 marks) (Total 20 marks)
